De La Salle University

COLLEGE OF LAW

Syllabus
in OBLIGATIONS and CONTRACTS

CONTRACTS

PART II-A - 3rd Long Quiz

I. General Provisions

A. Definition, NCC 1305

Jardine Davis v. CA, 333SCRA 684

Heirs of Intac v CA, G.R. No. 17321, October 11, 2012
MIAA v Avia, G.R. No. 180168, February 27, 2012
Heirs of Uy v Castillo, G.R. No. 176425, June 5, 2013

Stages of contracts:
Bugatti v. CA, 343 SCRA 335 (2000)

B. Characteristics

1. Autonomy of will, NCC 1306

Riviera Filipina, Inc. v. CA, 380 SCRA 245 (2003)

Malbarosa v CA, G.R. No. 125761, 2003
Capalla v COMELEC, G.R. No. 201112, June 2012
(concurring of J. Sereno)

Should not be contrary to law

Heirs of Severina San Miguel v. CA, 364 SCRA 523
Manila Prince Hotel v. GSIS, 267 scra 408

Should not be contrary to morals and good customs

De los Reyes v. Alojado, 16 Phil. 499

Should not be against public policy

Gabriel v. Monte de Piedad, 71 Phil.500

2. Mutuality, NCC 1308-1310

Garcia v. Rita Legarda, Inc., 21 SCRA 555

PNB v Manalo, G.R. No. 174433, February 24, 2014
Silos v PNB, G.R. No. 181045, July 2, 2014
 3. Relativity, NCC 1311

DKC Holdings Corp. v. CA, 239 SCRA 666

Direct Funders Corp. v. Lavina, 373 SCRA 645
PNB v. Dee, et al., G.R. No. 182128, February 19, 2014
MBTC vs. Chiok, G.R. No. 171652, November 26, 2014
FBDC v. Fong, G.R. No. 209370, March 25, 2015

Exceptions:

(a) Accion Pauliana

(b) Accion Directa
(c) Article 1312
(d) Stipulation pour autrui, NCC 1311(2)

Coquia v. Fieldmans Insurance Co., Inc., 26 SCRA 178

Mandarin Villa, Inc. v. CA, 257 SCRA 538

4. Obligatory force, NCC 1315, 1314

R.S. Tomas, Inc. v Rizal, G.R. No. 173155, March 21,

2012

C. Elements of a Contract

Gironella v. PNB, G.R. No. 194515, September 16, 2015

1. Essential, NCC 1318

(a) Consent of the contracting parties, NCC 1319

(b) Offer, NCC 1321, 1323-1326
(c) Acceptance, NCC 1320, 1322, 1319

Rosenstock v Burke, 46 Phil 217 (1924)

Sanchez v Rigos, 45 SCRA 368 (1972)
Capalla v COMELEC, G.R. No. 201112, June
2012 (concurring of J. Sereno)
Malbarosa v CA, 402 SCRA 108 (2003)
Traders Royal Bank v Cuison, June 5, 2009
Talampas vs. Moldex Realty, G.R. No. 170134,
June 17, 2015

(d) Object, NCC 1347 1349

Blas v. Santos, 1 SCRA 899 (1961)

 Tanedo v CA, 252 SCRA 80 (1996)

(e) Cause, NCC 1350 1355

Liguez v CA, 102 Phil 577 (1957)

Carantes v CA, 76 SCRA 524 (1977)
Sps. Buenaventura v CA, 416 SCRA 263 (2003)

NOTE: Natural Elements

(1) Right to resolve, NCC 1191

(2) Warranties in sales contracts

Toledo vs. CA, G.R. No. 167838, August 5, 2015

D. Stages of a Contract, NCC 1315, 1316

E. Essential Requisites of Contracts - 1318-1319

a) Consent freely given
Offer and Acceptance;
Advertisement is not an offer but an invitation to make
an offer;
Qualified acceptance; counter-offer;
Capacity to give consent:
i. If one party is a minor and the other is not,
the contract is voidable
ii. If both parties are minors, the contract is
unenforceable
Vices of consent
i. Mistake - 1330-1334 - Sps.
Theis v. CA, GR No. L-126013, February
12, 1997
ii. Violence and Intimidation - 1335-1337
Martinez v. Hong Kong and Shanghai Bank,
15 Phil. 252 (1910)
iii. Fraud - 1338-1346
International Corporate Bank v. Gueco, 351
SCRA 516
Two kinds of fraud:
Dolo causante; requisites
Tankeh v. DBP et al., GR No. 171428, Nov.
11, 2013
Dolo incidente -
Usual exaggeration does not vitiate consent:
Songco v. Sellner, 37 Phil. 254 (1917)
Simulation:
JR Blanco v. Quasha, 318SCRA373 (1999)
 Cruz v. Bancom Finance Corp., 379 SCRA 490
(2002)
b) Object certain - 1347-1349
J.L.T. Agro v. Balansag, GR No. 141882, March
11, 2005
c) Cause of the obligation- 1350-1355

II. Form of Contracts, NCC 1356-1358

Hernaez v de Los Angeles, 27 SCRA 1276 (1969)

Zamora v Miranda, G.R. No. 162930, December 5, 2012
SMPI vs. BF Homes, G.R. No. 169343, August 5, 2015

A. For validity -
B. For enforceability - Statute of Fraud Art. 1403
C. For registrability

F. Classification of Contracts

1. According to degree of dependence

(a) Preparatory
(b) Principal
(c) Accessory

2. According to perfection

(a) Consensual
(b) Real

3. According to form

(a) Common or informal

(b) Special or formal

4. According to purpose

(a) Transfer of ownership

(b) Conveyance of use
(c) Rendition of service

WT Construction, Inc. v. The Province of Cebu, G.R. No.

208984, September 16, 2015

5. According to subject matter

(a) Things
(b) Services
 6. According to the nature of the obligation

(a) Bilateral
(b) Unilateral

7. According to cause

(a) Onerous
(b) Gratuitous

8. According to risk

(a) Commutative
(b) Aleatory

9. According to name

(a) Nominate
(b) Innominate, NCC 1307

Tinsay v. Yusay, 47 Phil. 639 (1925)

Dizon v Gaborro, 83 SCRA 688 (1978)

III. Reformation of Instruments, NCC 1359-1369

Garcia v Bisaya, 97 Phil 609 (1955)

Bentir v Leande, 330 SCRA 591 (2000)
Sarming v Dy, 383 SCRA 131 (2002)
Cosio v. Palileo, 14 SCRA 170
Emilio v. Rapal, 617 SCRA 199

IV. Interpretation of Contracts, NCC 1370 1379, Rule 130,

Secs. 10-19, Rules of Court

Sps. Bonifacio vs. Kimwa Construction, G.R. No. 171601,

April 8, 2015